7Days, 2005. február 7

7/28/2019 7Days, 2005. február 7.

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1051 Budapest, Hercegprímás utca 19 Tel: 354 3290 Fax: 354 0130 Mail: [email protected]

02 June 2013Business Renault has healthy 2004

MOL allows $186 mln provisions for 2004Elcoteq invests Euro 54 mlnJabil facility in SzombathelyNokia opens addition to Komárom plant

OTP offers new gov’t-guaranteed loansSaveAs expects software to boost salesFinancial services provider enters Hungarian marketTelenor retains Hungarian mobile unitKPMG wins tender to prepare broadband strategyGVH investigates poultry industry complaintsHungary’s mobile phone penetration rate 86.4%Water market swells in 2004Venture capital rose in 2004Waste disposal and recycling plant in NE HungarySzeged ploughs Ft 2.5 bln into transport

Kecskemét area invests in sewage systemEconomics Industrial producer prices rise 3.5% in 2004

GKI projects GDP growth of 4% in 2005Public makes tax suggestions to FinMin

Politics Premier picks new rate council membersVAT dept head leaves Finance Ministry

Domestic Ft 5 bln goes to NGOsGov’t may inject Ft 8 bln into filmsDebrecen University to sign financing deal

Stockwatch BUX Close: 15552.51 Change: (-60.78, -0.39%)Exchange Fixed Middle RateWeather Tomorrow: snow

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02 June 2013Business PSzÁF responds to OECD criticism

Kafijat buys Antenna stakeVideoton and EPM open clean roomAxis preliminary 2004 resultsMatáv sells real estate unitMKB signs Ft 1 bln deal with Vasas Club

BCE sees Ft 38 mln profitZoltek to invest Ft 1 bln in NyergesújfaluLeading co's increased ad budgets in 2004Stud farm wants to lease Bábolna grounds Travel compensation changes, unions protestSPB to trade on BSEDigital broadcasting gains groundSuppliers take over Bábolna turkey processing plant

Economics 11-month foreign trade deficit revised slightly downPMI drops to 48.1 in JanuaryAgMin to ask EU to rechannel 10% of fundingOEP Ft 30 bln down on targetIT Min aims for 2 mln more internet users

Politics MPs declare assetsFidesz proposes amending Constitution

Domestic Investigation against suspected war criminal startsPalace of Arts is ready for rent

Stockwatch BUX Close: 15,442.28 Change: -110.23 (-0.71%)Exchange Fixed Middle RateWeather Tomorrow: p/cloudy

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02 June 2013Business Fundamenta becomes profitable in 2004

PSzÁF approves new OTP acquisitionMIRAE to build Ft 2.5 bln factoryCsányi eyes advertising companyBlikk continues to grow in circulationUPC offers Internet light package

Eurorisk helps Peugeot and Citroen buyersPig farmers call for giant slaughterhouseBlue Air flies Bp-Bucharest via Targu MuresStyl is delistedNew cargo base to be at EcserWorkings behind Antenna trading revealedSiemens wins Euro 28.6 mln MÁV order

Economics Gov't chooses AAK to build motorwaysBokros critical of gov't policyFt 300 Bln of funds to build m'waysPM promises Ft 8 bln to revamp flatsPSzÁF supports positive list of debtorsAKK repurchases Ft 58.47 bln bonds

Farmers offer cereals for interventionPolitics Heads of all 4 parties to discuss NFT

PM: Roma issue biggest social challengeDomestic Gov't mulls using choppers for radar construction

Two men shot on Budapest streetMassacre not ethnically motivated

Stockwatch BUX Close: 15462.92 Change: +20.64 ( +0.13%)Exchange Fixed Middle RateWeather Tomorrow: cloudy

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02 June 2013Business Pension funds urged to buy shares

GVH fines Vodafone Ft 5 mlnStocks surge to new record highKapuvár loses Triumph ordersZeuna looses half of Suzuki order Manure plant for Sümegprága

CEO leaves Bonbonetti and StollwerckViasat3 winds up terrestrial broadcasting AMI to unite all 9 manure branchesMerrill Lynch to launch in HungaryRába develops suspension systemMahart to ship containers to Black SeaSupermarkets must pay promptlySeminis reports 15% sales risePlane Station collects airport licenses

Economics Gov't to amend housing loan rulesVAT revenue up Ft 30bln on expectationsMNB independence issue- new twistPM: Exchange rate stability-priority

Online reservations tripleRussia ensures smooth oil supplyPolitics PM: "open planning" of Nat Dev Plan

Advertising quarrel leads to sackingDomestic Secret plans nuke waste site

Nazi-hunter on suspected war criminalStockwatch BUX Close: 15784.81 Change: +321.89 ( +2.08%)Exchange Fixed Middle RateWeather Tomorrow: p/cloudy

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02 June 2013Business Gedeon Richter's Q4 profit up 24%

Both Bp indexes reach record highsSpar builds meat plant for own supplyBourse reports profit of Ft 1.024 blnFinancial Inst. eyes SlovakiaGov't mulls sale of Bp Airport Stake

Wizz closes Euro 25 mln transactionRyanair may land in Budapest TUV Group closes good yearMalév gets new Pres & CEO FriMKB winds up Swiss subsidiaryMARTINEX looks West4 bidders for M0 N. section constructionFlextronics gives notice to 450Externet turnover on the riseHVB expects good profit

Economics PM: Black economy some 30% of GDPFM calls for stricter VAT auditingRomania a favorite for Hungarian investors

PPP is picking upPolitics PM warns against nostalgia for communism

Boards approve MDF-MDNP mergerHiller to be succeeded by Vass or Schiffer

Domestic PET/CT diagnostics to open in HungaryStockwatch BUX Close: 16032.83 Change: +248.02 (+1.57%)Exchange Fixed Middle RateWeather Tomorrow: p/cloudy

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02 June 2013Business

Renault has healthy 2004

Renault Hungária Kft’s 2004 revenue was Ft 4 billion more than the previous year, reaching Ft 67 billion. Thecompany, together with Dacia, reached a 10.13% market share on the new vehicle market, selling a total of 22325vehicles last year, 2799 of which were small utility vehicles. Renault is not planning on increasing their marketshare this year due to the instability of the new vehicle market. (MH 12) E.C.

MOL allows $186 mln provisions for 2004

MOL Rt said it plans to set aside Ft 35 billion of provisions, a sign of OAO Yukos Oil Co.’s bankruptcy affectingthe company. The items affecting Budapest-based MOL’s 2004 profit include Ft 25 billion set aside for payouts for altering employee compensation packages and about Ft 10 billion for the expired debt of Yukos, MOL said in astock-exchange statement. MOL operates a Siberian oil field with Yukos that sold its crude through the Russiancompany, before the Hungarian company looked for other outlets after Yukos filed for bankruptcy. The provisionshows MOL was more exposed to Yukos’s troubles than investors had previously thought, analysts said.(Bloomberg; NG 1, Vg 1, Nb 16)

Elcoteq invests Euro 54 mln

Elcoteq, a Finnish electronics company, is spending Euro 54 million on equipment to expand production at itsfactory in Pécs. The investment will be completed by 2008 and will create 700 more jobs. Elcoteq currently

employs 4,800 people at the factory, which makes telecom products and communications network equipment.Elcoteq may also pick Hungary as its new corporate headquarters. The move would be part of its plan to convertinto a European Company, a company form available to businesses operating in more than one EU member stateand intended to make it easier for businesses to carry out cross-border activities within the EU. Elcoteq Chairman Antti Piippo announced the news at a press conference with Minister of Economic Affairs and Transport JánosKóka yesterday. (Econews; NG 5, Nv 5, MH 12, Nb 15)

Jabil facility in Szombathely

Florida-based US telecommunications giant Jabil Circuit is poised to mount a greenfield investment for a newservice center in the industrial park of Szombathely, western Hungary. The 17,500-sqm facility will service andtest telecommunications and mobile devices from August this year with a total staff of 715 by year-end. Jabil,which operates 13 service centers in 11 countries globally, set up its first Hungarian plant in Tiszaújváros 5 yearsago, where it currently employs some 2000. The company registered revenues of USD 4.7 billion on group level in2003. (Nb 15) S.F.

Nokia opens addition to Komárom plant

Nokia Hungária Kft officially opened a new production hall at its production site in the Komárom (northwesternHungary) industrial park yesterday. The facility, which doubles Nokia’s capacity in Hungary, cost more than Euro50 million to build. Construction started in March, 2004, and production began in autumn. Prime Minister FerencGyurcsány and Nokia president Pekka Ala-Pietila were present at the ceremony. The new addition at the sitebrings the plant’s total area to 50,000 sqm. The plant employs more than 3,000 people, and its suppliers employ afurther 4,000. (Econews; NG 5, Vg 11)

OTP offers new gov’t-guaranteed loans

Starting today, couples under the age of 30 will be able to take out home loans for up to the entire value of thepurchase from OTP Bank Rt with no downpayment. The loans are available under the government’s new „nest-building” program, which provides a government guarantee on the loans, in addition to subsidizing a part of

interest payments. Although couples who take out the loan will have to make a downpayment on the purchase,OTP is offering a separate loan to cover this. This loan will also carry a government guarantee. OTP alsoannounced it will offer the subsidized home loans at a fixed annual rate of 4.49% for 5 years starting February 1.(Econews; Nv 1, MH 2)

SaveAs expects software to boost sales

SaveAs Kft, a Hungarian software developer, expects sales of its new network monitoring software to boostrevenue this year by 20-30% over last year’s Ft 400 million, László Kaiser, the company’s technical director, saidyesterday. The software, called EagleEye, monitors the transfer of data inside secure networks, preventingunauthorized personnel from accessing information. SaveAs developed the software in collaboration with U.S.experts. Several government defense institutions in the U.S. have expressed interest in the software. In the CEEregion, SaveAs will introduce the software first in Hungary. (Econews)

Financial services provider enters Hungarian market

Financial service provider United Financial Services Group (UFS) surfaced in the Hungarian market recently. TheState Financial Institutions Supervision (PSzÁF) gave its permission for operation to two of its subsidiaries, UFSNET Kft and UFS Broker Kft on Jan. 21. The group is providing financial, real estate, factoring and other financial

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services to both private individuals and SMEs, and has agreed with Union Insurance Rt to sell its products. (Vg14) R.G.

Telenor retains Hungarian mobile unit

Telenor SA, Norway’s largest phone company, won’t sell its Hungarian mobile unit Pannon GSM Rt or rename it,the Hungarian news Web site HVG reported, citing a company official. Telenor denied earlier reports that it maysell Pannon to France Telecom SA’s Orange unit, or rename the Hungarian company to carry the Orange brand,HVG reported, citing Dag Vangsnes, a Telenor spokesman. (Bloomberg; NG 5)

KPMG wins tender to prepare broadband strategyMajor consultancy KPMG Hungária Kft has won a tender called by the National Communications Authority (NHH),to prepare a strategy for the regulation of broadband electronic communications in Hungary, according to anannouncement in the Public Procurement Gazette. KPMG will prepare the strategy for net Ft 19.5 million. Theother bidder in the tender was Infrapont Economic Consultancy Kft, which submitted an offer of Ft 19.8 million toprepare the study. KPMG will have to prepare a survey of the current market and its regulation both in Hungary.(Econews)

GVH investigates poultry industry complaints

Hungary’s Competition Office (GVH) announced yesterday that it had started an investigation into complaints thatpoultry industry companies are abusing their market positions. One report GVH is looking into is an allegation thatpoultry processors are categorizing poultry as lower quality, which means they pay up to 50% less for it. Another complaint is that poultry processors cut the farmgate price Ft 5 per kilogram immediately after the HungarianBroiler Association gave members an equivalent subsidy because of the cold winter. GVH said it will decideshortly whether to start a procedure regarding the allegations. (Econews)

Hungary’s mobile phone penetration rate 86.4%

Hungary’s mobile telephone penetration rate, or the number of subscribers per 100 people, rose to 86.4% by theend of 2004 from 78.5% in December, the telecommunications authority (NHH) reported yesterday. The number of active subscribers rose 9.9% to 8.73 million from 7.94 million a year earlier. The market leader is still T-MobileHungary Rt, but its market share shrank to 46.2% from 47.4% at the end of 2003. Pannon GSM Rt’s market sharewas 33.9% as against 35.8% a year earlier, while Vodafone Hungary Rt gained 3.1 percentage points giving it a19.9% share. T-Mobile’s share of wireless traffic fell from 42.5% to 41%, Pannon GSM’s fell from 36.4% to 35%,and Vodafone’s increased from 21.1% to 23.9%. (Econews; NG 5, Vg 11)

Water market swells in 2004

Mineral water consumption has spurted 36% both in terms of volumes and value in the past year as Hungariansare developing an increasing liking for premium bottled waters, according to a survey of market researcher GfK.While in the first 10 months of 2003, 71% of households gulped mineral water on a regular basis, this figure hadshot up to 77% a year later. The majority of Hungarians normally bulk-buy their spring water supplies atsupermarket chains every other week with the 350 discount stores and 70 hypermarkets accounting for 59% of the total sales. Today 68% of Hungarians drink mineral water compared to 29% in 1990. (Vg 1) S.F.

Venture capital rose in 2004

The risk capital and private equity markets witnessed a strong upswing last year with the number of transactions jumping from 32 in 2003 to an estimated 43-45, just shy of the 2000 record of 47, Julián Tzvetkov, president of theHungarian Venture Capital and Private Equity Association (MKME) said quoting preliminary figures. Trading alsopicked up in volume terms last year with the total value of transactions projected to come in at Euro 115 million-120 million, which brings the total amount of capital invested in these markets in the past 15 year to 4%-5% of theoverall FDI level in the same period, Tzvetkov said. (Vg 8) S.F.

Waste disposal and recycling plant in NE Hungary

Some Ft 500 million is to be spent on the construction of a debris disposal and recycling plant in Bodrogkeresztúr on the site of the existing regional waste management plant. The investment will be carried out in cooperation with66 local governments from Abaúj and Zemplén. The municipalities will be using both budgetary and EU funds for the construction. (MH 6) E.C.

Szeged ploughs Ft 2.5 bln into transport

Szeged municipality is to spend Ft 2.5 billion on the development of electric public transportation over the next 3years, said city mayor László Botka yesterday. From this amount, they will renovate the tram tracks, the trolleybusoverhead cables, and the vehicles themselves. (MH 6) E.C.

Kecskemét area invests in sewage system

With the use of EU funds, Kecskemét is to launch a Ft 10 billion investment in the development of the seweragesystem there and in 3 other surrounding towns. The contract was signed yesterday by the mayors of the towns.(MH 6) E.C.

Economics

Industrial producer prices rise 3.5% in 2004

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Industrial producer prices increased 1.5% in December last year from November, and were up 3.5% in the twelvemonths to December, the Central Statistics Office (KSH) announced yesterday. Industrial producer prices for domestic sale increased 8.4% last year, while producer prices in forint terms for export sale fell 0.4%. Industrialproducer prices slipped 0.5% in the month of December, 2004, and were up 1.6% in the twelve months toDecember. December industrial producer prices for domestic sale fell 0.4% in a month, and were up 7.2% yr/yr while export sales prices in forint terms slipped 0.6% from November and fell 2.7% yr/yr. (Econews; NG 3, Vg 5,Nb 16)

GKI projects GDP growth of 4% in 2005

Hungary’s economy will expand 4% in 2005, level with the rate of growth in 2004, according to the latest report byeconomic research company GKI, made in cooperation with Erste Bank Rt. GKI projects average annual inflationof 4.5% in 2005, compared to 6.8% in 2004. Year-on-year inflation in December will be 4.3%, which will justify alarge central bank rate cut, according to GKI. Hungary will end the year with an ESA general government deficit of 4.9% of GDP after a preliminary 5.3% of GDP in 2004. (Econews)

Public makes tax suggestions to FinMin

The Finance Ministry’s recent appeal for suggestions for a simpler tax system attracted opinions mostly atvariance with PM Ferenc Gyurcsány’s conception, who ruled out the possibility of a flat rate or a two-tier taxsystem over the weekend. Most suggestions made through the Ministry’s website favored a flat-rate VAT andpersonal income tax system. Respondents also criticized the time-consuming administration and complicatedforms. (NG 3) R.G.

PoliticsPremier picks new rate council members

Prime Minister Ferenc Gyurcsány nominated four new members to expand the Central Bank’s rate-setting council,including its former chief economist, raising concern the government will try to force policymakers to cut thehighest borrowing costs in the European Union. The nominees today to the Monetary Council are Judit Neményi,an economist at Budapest-based economic research company Pénzügykutató Rt. Neményi quit the central bankas chief economist in 2001 after current central bank President Zsigmond Járai took office. Other future membersinclude professors Tamás Bánfi and Csaba Csáki and Peter Bihari, head of an economic forecasting company.(Bloomberg; MH 11, Nb 1, NG 1, Nv 1, Vg 1)

VAT dept head leaves Finance Ministry

Márta Pénzely, former head of the VAT department at the Finance Ministry is joining Deloitte Business andManagement Consulting Rt as of March 1, the company announced. Pénzely left the Finance Ministry lastNovember, turning down a lesser position she was offered there due to a restructuring of her department.

However, some sources reported that she left because VAT incomes in 2004 failed to meet former governmentexpectations. (NG 8) R.G.

Domestic

Ft 5 bln goes to NGOs

More than Ft 5 billion has been awarded to NGOs by the National Basic Civil Program (NCA) in 2004, said EqualOpportunities minister Kinga Göncz. The aim of the NCA is to secure the operative stability of theseorganizations, to enhance the sector’s development, and to widen the international relationship network, sheadded. Only 13% of eligible organizations applied for the subsidy. Some 45% of the money went to the capital,29% was awarded to county capitals, 16% to towns, and 10% to villages. According to civil relations departmenthead György Bódi, the process is likely to be simplified and an 8-day grace period will be allowed to applicants toresubmit a corrected application if the original was refused due to formalities. (Nv 4, Nb 8) E.C.

Gov’t may inject Ft 8 bln into films

The Motion Picture Public Foundation of Hungary (MMK) will be able to finance the production of Hungarian filmswith state subsidies worth Ft 3.74 billion this year, according to a government decision. The foundation would alsobe entitled to finance films by bank loans up to a maximum aggregate of Ft 2.85 billion this year, if the governmentaccepts the proposal in the coming weeks, according to Balázs Zachar, an official at the audiovisual departmentof the Ministry of Cultural Heritage. If the plan is accepted, the government would spend Ft almost Ft 8 billion onfilms this year. (NG 1) R.G.

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Debrecen University to sign financing deal

The University of Debrecen is due to sign a financing deal in the coming weeks on a Ft 12 billion mammothinvestment for a new medical complex to be added to the University’s campus. Dubbed as the Auguszta programafter one of the campus buildings, the project will see construction of a regional health observatory, a centraloperating block, an intensive therapy ward and a rehabilitation department on 13,000 sqm and upgrades of several existing buildings. The investment has won Ft 9 billion EU backing, but the local municipality has alsochipped in Ft 1.8 billion. A building contractor is scheduled to be picked by mid-2005, while the project will becompleted by Sept 2007. (Nb 10) S.F.

Stocks

BUX Close: 15552.51 Change: (-60.78, -0.39%)

Stock Closing price Daily change (%) Average price VolumeMOL 12,580 0 12,499 301,399Matáv 875 -1.7 879 453,009OTP 6,095 0.3 6,077 366,394Richter 24,705 -1.6 25,057 13,884Egis 13,100 -1.5 13,183 5,415 Antenna 4,090 -1 4,076 12,582TVK 5,055 0.1 5,050 640Rába 790 1.3 800 117,569

Budapest Stock ExchangeExchange Rates

FIXED MIDDLE RATE In forints

Jan 31, 2005 National Bank of HungaryEUR 1 245.70USD 1 189.15GBP 1 355.85CHF 1 158.56JPY 100 182.49CZK 1 8.14PLN 1 60.67

Weather Tomorrow: snow

High 1°C (34°F)Low -5°C (23°F)

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PSzÁF responds to OECD criticism

Hungary's financial market regulator PSzÁF has responded to a statement from a forthcoming report by the OECD that the profitability of the country's banking sector is exaggerated and needs to better regulated. PSzÁF said in an electronicnewsletter that the sector's profitability is not a result of structural problems, as the OECD argues, but a result of lower wages, the high base rate, state-subsidized home loans and banks' improved efficiency. Hungary's banks had an average ROE(return on equity) of 18% in 2003, compared to an average 11% among all new EU states. Average ROE in the EU-15 was10% in 2003 while in the U.S. it was 15%. In the first nine months of 2004, however, average ROE at Hungary's banks rosemarkedly to 27.17%, according to the market watchdog's figures. (Econews; MH 13, Vg 15)

Kafijat buys Antenna stake

Kafijat Kft acquired a 10.17% stake or 1,208,144 shares in the television signal broadcaster and telecom company AntennaHungária Rt from its London-based subsidiary Firthlion Ltd, Antenna announced late yesterday. The announcement explainsthe mega-deal in Antenna Hungária shares on the Budapest Stock Exchange yesterday morning. The deal, made at Ft 4,050

per share, Ft 40 lower than Monday's closing price, involved 1,208,144 shares of the company's overall 11.87 million shares.

Kafijat Kft is a financial investor controlled by the Russian businessman Megdet Rahimkulov and family. Rahimkulov is thechairman and chief executive of the Hungarian retail bank AÉB Rt. (Econews; NG 11, MH 13,)

Videoton and EPM open clean room

Hungary's Videoton Holding Rt and the Brooks Instrument division of Emerson Process Management (EPM), based in theU.S., have completed a $3 million clean room to test control valves in Székesfehérvár. Videoton is renting the 900 sqm clean-room to Emerson Process Management. Jim Dale, who heads the Brooks Instruments division, said at the opening of thefacility that Székesfehérvár would become the group's European center for instruments manufacturing starting this year. The

plant produces control valves for the pharmaceutical, food, chemicals, semi-conductor and environmental industries. The plant projects annual turnover of $8 million (Ft 1.5 billion) this year. (Econews; NG 4)

Axis preliminary 2004 results

Software developer Axis Kft stands to close its 2004 financial year with revenues of Ft 1.2 billion, up 20% from a year before, managing director László Dénes said citing preliminary figures. The Axis group, which offers platform-independentsolutions and IT consulting services and is also a major distributor of Cognos and Sybase IT solutions in Hungary, said itsgrowth was driven by the growing popularity of its software both with public and private sector companies. (NG 10) S.F.

Matáv sells real estate unit

Matav Rt said yesterday that it had sold its real estate operations company Telit Rt to DeTe Immobilien, a 100% DeutscheTelekom subsidiary, for Euro 2.1 million. The company will provide real estate services to Matáv based on a long termservice contract effective from February 1, 2005. Matáv is majority owned by Deutsche Telekom. The new contract not only

provides cost reductions for Matáv, but also creates the basis for the outplacement of an additional 50 employees on top of earlier real estate outsourcing. A small strategic real estate management unit will remain in the company, reporting to Matáv'schief financial officer. Matáv said that it intends to continue outsourcing in other areas in the course of 2005. (Econews; Nv4, NG 11)

MKB signs Ft 1 bln deal with Vasas Club

MKB Euroleasing Rt has signed an agreement with the prestigious Vasas Sport Club on a Ft 1 billion investment to build anew sporting complex for the club in the next 10 years. The parties also agreed to set up a joint company to manage the

project, the first phase of which will include construction of a new soccer pitch and streetball court and gym for Ft 350million-Ft 400 million to be completed in May this year. Construction work is due to kick off next week. (NG 5) S.F.

BCE sees Ft 38 mln profit

The Budapest Commodities Exchange (BCE) expects profit of Ft 38 million on revenue of Ft 240 million this year, accordingto its business plan, approved at an EGM on Monday. The BCE is tax exempt until May 2008. This year the BCE expects to

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get a Ft 55 million dividend from central clearing house and depository Keler Rt, in which the BCE holds a 20% stake. In2004 BCE had profit of Ft 49 million on revenue of Ft 300 million, according to preliminary figures, compared to losses of Ft177 million the previous year. (Econews; MH 12)

Zoltek to invest Ft 1 bln in Nyergesújfalu

Zoltek Rt in Nyergesújfalu is going to invest Ft 1 bln in business expansion, as part of a drive to become Europe's leading

carbon fibre manufacturer. At the same time, acrylic and polyamide production was halted on the instruction of its parentcompany, the American Zoltek Co. Inc., which started to produce chemical carbon fibres in 1995. Zoltek now has four production lines, and uses three different technologies to produce the brands Panex35 carbon fibre cable and Pyron cable, for markets at home and abroad. (Vg 1, 12) K.H.

Leading co's increased ad budgets in 2004

Hungarian companies spent Ft 440 billion, an overall 18% more on advertising in 2004 than a year earlier, a 10.5% jump inreal terms over 2003, according figures published by Mediagnozis, a leading provider of media expenditure monitoring. Withthe one notable exception of first-rank Unilever Kft, which cut its ad bill by 10% to Ft 15 billion last year, all the top 10advertisers spent more to promote their products on the market. The highest growth was posted by dairy Danone Kft, whichmore than doubled its ad costs, followed by telcos Matáv Rt and T-Mobile Rt with a respective 85% and 61% rise. The topthree Hungarian advertisers in 2004 were Unilever, Westel/T-Mobile and Pannon GSM Rt. (NG 4) S.F.

Stud farm wants to lease Bábolna grounds

Bábolna National Stud Estates Kft is aiming to get the leasing rights of the grounds of Bábolna Rt to keep up operation. Thecompany was set up to stay in state property and conserve the special Hungarian horse varieties. But after several attempts atrestructuring and downsizing it is still making a loss; and has to recourse to loans. General manager Tamás Rombauer said hewould like to secure about 5,700 hectares of the former parent company, which is being liquidated. The farming of the landwould ensure the sustainability of the company, helping it to eliminate the need for state subsidies, he added. (Nb 7) G.R.

Travel compensation changes, unions protest

Trade unions are protesting the new conditions for travel compensation. From Jan. 1, workers who work in a town or village

other than where they live might only get 80% or 87% travel compensation with an invoice, if they actually buy the bus or train season ticket. Previously, those who commuted to work by car were also remunerated by their employers, but nowdrivers can only get fuel compensation, which is much lower. This discriminates against those who cannot use publictransport to get to their workplace, said the unions. The amendment of the conditions was made without consulting tradeunions, representative of the Worker's Council, Imre Palkovics said. Unions have started negotiations on increasing the fuelcompensation level. (Nb 15) G.R.

SPB to trade on BSE

SPB Investment Rt obtained the authorization to trade on the Budapest Stock Exchange (BÉT) on Monday. The company,which has Ft 500 million base capital, has been on the Hungarian capital market since 2001, but until now carried out thetransactions through other broker companies. SPB Investment is owned by Austrian Bankhaus Samesch & Cie, customer

service director, Judit Kecskeméti said. (NG 12) G.R.

Digital broadcasting gains ground

UPC Hungary Kft is set to introduce digital cable TV broadcasting in the second half of this year, according to unnamedsources, giving access to many more channels. The government is also working on a proposal regarding digital terrestrial

broadcasting, said Krisztina Rozgonyi, of the National Communications Authority (NHH). The role of the state has yet to bedefined, and state subsidies are frozen all over the EU until Brussels completes ongoing investigations in the same issue inGermany and Sweden. On Monday experts from Europe held a conference in Budapest discussing problems about digitalterrestrial transmission, which may be introduced in Hungary in 2007. Analogue broadcasting is expected to be phased out bythe last day in 2012. (Vg 1, NG 8) K.H.

Suppliers take over Bábolna turkey processing plant

Suppliers of a turkey processing plant in Kecskemét (central Hungary) owned by Bábolna Rt, which is under liquidation,have used their claims against the company to buy out its operations there. The suppliers' company, called Gallfood Turkey

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Processing and Sales Kft, will start production at the plant again on February 14, keeping all 400 employees in their jobs. Thesuppliers had more than Ft 2.3 billion in claims against Bábolna, more than the price of the plant, according to Endre Vadász,director of Reorg Rt, Bábolna's liquidator. The rest of the claims will be paid in cash. (Econews; NG 5)

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Economics

11-month foreign trade deficit revised slightly down

In the first eleven months of 2004 Hungary's foreign trade deficit amounted to Euro 4.055 billion, Euro 264 million up fromthe same period of 2003, the Central Statistics Office (KSH) reported yesterday. The eleven-month deficit is slightly lower than the preliminary Euro 4.074 billion deficit reported on January 11 as both exports and imports were revised slightly up.

Exports rose 15.4% to Euro 40.204 billion, while imports increased 14.6% to Euro 44.259 billion in the first eleven monthslast year according to the revised figures. In November alone, the trade deficit was Euro 102 million, less than half of the preliminary Euro 250 million or the Euro 224 million deficit in November 2003. Mobil phones represented 15% of the valueof November exports. (Econews; MH 11, Nb 15)

PMI drops to 48.1 in January

The Purchasing Manager Index dropped 4.8 points to a seasonally adjusted 48.1 in February, Halpim, the company whichcompiles the index, reported yesterday. It is the first time the index has dropped under 50 - signaling a contractingmanufacturing sector - since October, 2004. Hungary's PMI was 49.9 in January, 2004. In the previous three years, JanuaryPMI has been an average 52. Unadjusted PMI in January, 2005 was 44.5, an improvement from 43.5 in December.(Econews; NG 4, Vg 4)

AgMin to ask EU to rechannel 10% of funding

Hungary will ask Brussels to rechannel up to 10% of Ft 180 billion available in EU rural development funding for distribution by Hungary's national budget, political state secretary of the Ministry of Agriculture András Pásztohy saidyesterday. The EU money is available, by application, between 2004 and 2006 under Hungary's National Rural DevelopmentPlan. But applications have been invited only since late last summer, leaving little time to make full use of the funds. Byeliminating the Brussels application process for some of the money, Hungary aims to ensure it can use all of the money. TheMinistry has no intention to cut the money available for environmental projects related to agriculture, Pásztohy said.(Econews)

OEP Ft 30 bln down on target

The National Health Insurance Fund (OEP) last year received Ft 30 billion less contributions and flat-rate health contribution(eho) than the previous target, resulting in the year closing with a deficit. Expenditure was also less than planned, withsavings of around Ft 5 billion in the sick leave fund, and Ft 3.5 billion in disability pensions, both due to stricter regulations.The only overspending was in the medicine price subsidy, which is repeatedly underbudgeted, said the National Audit Office(ÁSz). Employers' contributions dropped from 15% to 11%, while that of the employees from 4% to 3%. In addition, the flatrate health care contribution (now Ft 3450) is to be reduced to Ft 1950 from November. (Vg 1, 5) K.H.

IT Min aims for 2 mln more internet users

The IT and Communications Ministry aims to boost the number of internet users in the country from 2.7 million to 4.7million by the end of 2006. Lower prices will attract three-quarters of new users, and better content will draw in the rest of new users, said Minister of Information Technology and Communication Kálmán Kovács at a press conference in Budapest

yesterday. The Ministry expects a quarter of Hungarian households to have Internet access by the end of 2006, and thenumber of people with broadband access to double, as prices fall 15%-20%. All of Hungary's public institutions should beaccessible online by the end of next year, said Kovács. (Econews; Vg 11, MH 12)

Politics

MPs declare assets

Monday was the deadline for MPs to give a statement on their assets. Since 1997, these documents have to be made annuallyand they have been public since 2001. Several MPs still own nothing, according to their statements, but many of them havefortunes. Chairman of the socialist party (MSzP), István Hiller has given a Ft 2.5 million donation to an association for thehandicapped. SzDSz leader, Gábor Kuncze has increased his deposit from Ft 7.4 million to Ft 10.4 million in 2004. One of

the richest MPs is László Kaponyi, he has savings of over Ft 250 million and almost $100,000 and several real estateinvestments. (NG 1, MH 1, Nb 6) G.R.

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Fidesz proposes amending Constitution

The main opposition Fidesz party will propose amending the Constitution so that all Hungarians who willingly spied againsttheir fellow citizens during the communist era should be excluded from public power, a Fidesz MP told public TV yesterday.When asked whether it was possible to determine so long after the event whether a person had done something willingly or whether they had been coerced, Ervin Demeter replied that both the primary documents and the vetting committee would beable to accurately determine whether a person had informed of their own accord. "If an investigation fails to prove thatsomeone became an informant of his own will, he should not be affected by the law, said Demeter. (MTI; Nv 1, 3, MH 6, Nb8)

Domestic

Investigation against suspected war criminal starts

The military prosecution started an investigation against Hungarian-born Charles Zentai, an Australian citizen, who issuspected to be a WWII war criminal, a prosecution spokesman said yesterday. The investigation was initiated under charges

by the Simon Wiesenthal Center against 86-year-old Zentai, a former officer in the Hungarian army, who is believed to have been one of three men beating an 18-year-old Jewish boy to death in 1944. The other two men were tried and sentenced, butZentai managed to leave Hungary and move to Australia. Zentai has denied any role in the case and said he was ready totravel to Hungary to clear himself. (MTI; MH 2, Vg 13)

Palace of Arts is ready for rent

Construction of a new culture center dubbed as the Palace of Arts and located next-door to the National Theater has beencompleted for Ft 31.3 billion in line with previous plans, said Sándor Demján, the owner of the main contractor Duna SétánySzékház Kft. The building, which has 53,000 sqm of floor space instead of the originally planned 37,500, will be leased bythe state over the next 30 years for a total Ft 98 billion but operation and maintenance costs will be borne by the investor during this period. (NG 4) S.F.

Stockwatch

BUX Close: 15,442.28 Change: -110.23 (-0.71%) Stock Closing price Daily change (%) Average price Volume MOL 12,500 -0.6 12,506 228,204 Matáv 890 1.7 886 2,478,469

OTP 5,960 -2.2 6,018 527,950 Richter 24,775 0.3 24,748 75,783 Egis 12,800 -2.3 13,041 9,360 Antenna 4,140 1.2 4,050 1,215,107 TVK 5,250 3.9 5,199 8,855 Rába 780 -1.3 785 42,274

Exchange

FIXED MIDDLE RATE In forints Feb 01, 2005 National Bank of Hungary EUR 1 245.62

USD 1 188.37 GBP 1 354.31 CHF 1 158.23 JPY 100 181.30 CZK 1 8.18 PLN 1 60.56

Weather

Tomorrow: p/cloudy

High -1°C (31°F)

Low -7°C (20°F)

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Fundamenta becomes profitable in 2004

Home savings fund, Fundamenta had a pre-tax profit of Ft 141.1 million, as against planned losses of Ft 500 million,chairman-CEO Károly Gergely said yesterday. Gergely said Fundamenta was planning profit of Ft 300 -400 million in 2005.Gergely said Fundamenta turned a profit, in spite of planned losses, because of high interest rates and cost cutting measuresimplemented during the year. Fundamenta had outlays of Ft 22 billion for some 32,000 contracts in 2004. More than half of its clients spent the loans on home purchases. Fundamenta had deposits of Ft 70 billion, including state subsidies, by the endof the year. Its stock of loans rose 18% to Ft 10 billion. The quality of Fundamenta's loan portfolio is outstanding, Gergelysaid. (Econews; NG 5, Vg 5, Nv 5, MH 12)

PSzÁF approves new OTP acquisition

Hungarian financial market regulator PSzÁF has approved OTP Bank Rt's purchase of a 95.59% stake in Croatiancommercial bank Nova Banka. A spokeswoman for OTP said the purchase must still be approved by the Croatian central

bank. OTP will send PSzÁF's written approval of the purchase to the Croatain central bank next week. OTP expects thetransaction to be closed by the beginning of March. (Econews; NG 11, Vg 14)

MIRAE to build Ft 2.5 bln factory

MIRAE, a South Korean company which makes manufacturing equipment, is planning to build a Ft 2.5 billion factory in theKomárom industrial park. The factory will paint Nokia mobile phone shells. MIRAE is buying a 6.6 ha site in the park,Komárom local council official Margit Rédl said. MIRAE will start construction in March. The plant will employ 100 peoplewhen production starts in summer, and as many as 200 later on. With MIRAE's purchase in the park, 90% of it will beoccupied, Rédl said. (Econews; NG 5)

Csányi eyes advertising company

Hungarian daily Népszabadság reported in its Tuesday issue that OTP Bank Rt chairman-CEO Sándor Csányi is set to

purchase a majority stake in Multireklám Kft, Hungary's biggest billboard advertiser, citing unnamed sources. Csányi'scompany Bonitas 2002, has already signed a preliminary contract to purchase the stake, and is just waiting to finish duediligence, Népszabadság reported. Neither Csányi nor Multireklám owner János Sopronyi were available for comment,

Népszabadság wrote. OTP spokesman Annamária Em?di declined to comment other than saying that Csányi neither had nor has a direct or indirect stake in Multireklám. (Econews; MH 11)

Blikk continues to grow in circulation

The majority of daily papers sold less copies in Hungary during the last three months of last year, than in the same period of 2003, only daily Blikk increased it's circulation, according to the annual survey of Hungarian Circulation Control Association(Matesz). In the given period, Blikk sold 253,000 copies per day as against 237,000 a year before, while Népszabadságdeclined from 169,000 to 163,000 per day. Magyar Nemzet dropped from 79,000 to 75,000, even Nemzeti Sport went downfrom 91,000 to 85,000. In the category of lifestyle magazines, Joy jumped from 38,000 to 71,000, the most dramatic advance.(Ng 4) M.K.

UPC offers Internet light package

Internet service provider UPC Hungary Kft has introduced a new, cheaper broadband Internet package for users who do notwish to download large files from the Internet, managing director Joe Zuravle announced. The package "chello light" will beeight times faster than traditional modem access and will cost Ft 6,490 per month if clients sign a loyalty declaration for twoyears. UPC now has more than one million subscribers, out of them 720,000 have cable TV, 140,000 digital satellite TV and70,000-70,000 phone and Internet services. UPC increased the number of its clients by 15% last year and hopes to keep thismomentum this year too, Zuravle said. (Ng 4, MH 12) M.K.

Eurorisk helps Peugeot and Citroen buyers

Insurance broker Eurorisk Kft, a member of MKB-Euroleasing Group will assist buyers of French Peugeot and Citroenmodels in Hungary to calculate the best insurance conditions for them, the company announced. Eurorisk signed an

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agreement recently with the financing firm of Peugeot and Citroen vehicles in Hungary PSA Finance Hungária Rt about thenew service. The mother companies PSA Finance Holding and MKB Euroleasing have already concluded a similar agreement on an international level, this was now applied to the Hungarian market. (Ng 4) M.K.

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Pig farmers call for giant slaughterhouse

A consortium of pig farmers, formed last year with the aim of constructing a giant slaughterhouse, has registered a capacityrequest for 1.3 million pigs from pig producers so far, which is almost third of Hungary's annual pig output, The Livestock and Meat Council president László Zádori announced. The slaughterhouse would be established with the investment of Ft 25

billion, a part of which the consortium wants to finance from EU subsidies. However, Mrs László Merczel, secretary of the

Association of Meat Processors thinks that there is no real need for such an investment in Hungary with the current annual pig production. (Vg 4) R.G.

Blue Air flies Bp-Bucharest via Targu Mures

Bucharest-based low-cost airline Blue Air will fly from Budapest to Bucharest via Targu Mures from March 28, theTransylvanian paper Krónika reported. Blue Air will fly Boeing 737 aircraft on this route three times a week. Tickets fromBudapest-Targu Mures will cost Euro 45, while Targu Mures-Bucharest will cost Euro 20. Currently Romanian airline Taromcharges Euro 65 for a Targu Mures-Bucharest trip. (Ng 5) M.K.

Styl is delisted

Clothing manufacturing company Styl Rt confirmed previous news of its shares' delisting from the Bourse in a statementissued on the Stock Exchange's website yesterday. The Szombathely-based company went under liquidation on Jan. 27, after Factum 99 Rt submitted a liquidation request against the company last December. The delisting could take place in a fewweeks' time. (Vg 13) R.G.

New cargo base to be at Ecser

Budapest Airport Rt, the operator of Ferihegy International Airport, has chosen a site near Ecser, a nearby satellite town of Budapest, as the location of the new cargo base of the airport in preference to an area in adjacent Vecsés and another

potential site which is part of the airport, unnamed sources said. The company also acquired a project company of real estatedeveloper Carion Holding Rt, which had been established for the purposes of the cargo base development and owns the 20-hectare property picked as the ideal site for the project. The deal is estimated to be worth several hundred million forints. Thenew cargo facility, scheduled for completion in 2006 at a cost of Ft 5 billion-Ft 7 billion, will have an annual capacity of

110,000 tons. (MH 12) P.P.

Workings behind Antenna trading revealed

Tuesday morning's gigantic transaction at the Budapest Stock Exchange (BÉT), in which a 10.17% stake in broadcastingcompany Antenna Hungária Rt was sold and bought at a price of Ft 4,050 per share, was nothing more than a change of ownership between two companies controlled by General Banking and Trust Rt (ÁÉB) President Megdet Rahimkulov. Theseller of the 1.2 million shares was Firthlion Ltd, a company 100% owned by Rahimkulov and his family, as well as KafijatKft, the company that bought the stake. The transaction alone boosted the average share price of the past 180 days by Ft 50,which may come into play as the new owner of the currently state-owned 75% plus one share stake in Antenna, slated for

privatization in the near future, will not be allowed to make a buyout offer below this average. (MH 13) P.P.

Siemens wins Euro 28.6 mln MÁV order

Siemens AG, Germany's largest engineering company, will supply Hungary's state railway with Euro 28.6 million eurosworth of new trains after the Hungarian company secured the financing. Hungarian Railway (MÁV) Rt will buy 10 Desirodiesel railcars to help alleviate rising suburban traffic in Budapest, the railway said in an e-mailed statement. Siemens willdeliver the trains within a year. The railway, Hungary's biggest employer, signed an agreement with Germany's state-ownedKfW Group development bank to finance the acquisition. (Bloomberg)

Economics

Gov't chooses AAK to build motorways

Yesterday's cabinet meeting resolved to turn motorway construction, including management of financial resources needed for it, to the National Motorway Management Corporation (AAK). AAK replaces the National Motorway Corporation (NA) andthe move will let AAK borrow funds for the project from the market, which will not be part of the central budget, Economics

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Minister János Kóka said. The government plans to draw up a contract with AAK, which will manage motorway fees, usingthem to repay loans and maintain existing motorways. (MTI; NG 1, MH 1, Nv 3)

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Bokros critical of gov't policy

Former Finance Minister Lajos Bokros, known for his reform plan the 'Bokros Deal' severely criticized the currentgovernment's economic and fiscal policy in an interview to Figyel?net. Bokros claims that the planned tax reform will beuseless without a reform of the public sector and thinks that black economy should be countered by cutting personal incometax rates and by initiating new taxes like real estate tax. Bokros also criticized both the Hungarian National Bank and the

government because of concentrating on the Forint rate rather than on its stability. (Vg 5) R.G.

Ft 300 Bln of funds to build m'ways

Hungary plans to use Ft 300 billion of EU funds through 2013 to build motorways, as the country looks to upgrade itstransportation network to EU standards. The government plans to add Ft 600 billion forint of private money to the EU funds,as it wants to build 431 kilometers (268 miles) of new roads by the end of 2006, including some built since the Socialist-ledcabinet took office in 2002, Economy Minister János Kóka said yesterday. The government needs to spend on upgradinginfrastructure and health networks, while reducing the budget deficit so Hungary can start using the euro in 2010. The cabinetis counting on public-private partnership projects to alleviate the budget's burden. (Bloomberg; MH 1, Nv 3)

PM promises Ft 8 bln to revamp flats

Prime Minister Ferenc Gyurcsány said that the government will spend Ft 8 billion on the reconstruction of housing estateapartment buildings this year, despite the fact that there is only Ft 1.9 billion allocated for it in the 2005 budget. The amount

promised by the PM would only make reconstruction possible in 4.000 such apartments, while, according to former government commissioner Mrs László Csabai's estimation Ft 2,000 billion is needed to reconstruct all old blocks throughoutthe country over a 15 years' period. (Nb 1) R.G.

PSzÁF supports positive list of debtors

The State Financial Institutions Supervision (PSzÁF) announced that they support the idea of a positive list of debtors inHungary. The idea was first raised by the Hungarian Banking Association and Giro Rt. Currently commercial banks onlykeep a list of bad debtors who have not paid back their debt for months and no bank will grant these people a loan in the nextfive years. PSzÁF now proposes that banks should list their good clients, which would build mutual confidence and reduce

banks' loan risk as well. (Ng 3) M.K.

AKK repurchases Ft 58.47 bln bonds

The State Debt Management Center (AKK) repurchased government bonds worth Ft 58.47 billion before maturation at areverse auction yesterday. Investors offered bonds worth Ft 66.88 billion for sale. At the third reverse auction held of the2005/I three-year government bonds expiring on October 12, 2005, AKK received 18 offers worth a combined Ft 28.88

billion. AKK accepted all offers. The redemption will cut the amount outstanding of the series to Ft 266.95 billion. Theaverage ISMA yield at the auction was 8.48%, down 20 basis points from 8.68% at the previous reverse auction on January19. (Econews; MH 11)

Farmers offer cereals for intervention

Hungarian farmers have offered 3.792 million tons of cereals for EU intervention storage, the Agriculture and RuralDevelopment Office said yesterday. Laboratory tests show that 85-90% of the deliveries are of acceptable quality. The officeis processing orders and has so far accepted 800,000 tons of the cereals, but expects to have accepted 1 million tons by theend of February. (Econews)

Politics

Heads of all 4 parties to discuss NFT

On PM Ferenc Gyurcsány's invitation, presidents of the four parliamentary parties will sit down at the negotiating tabletomorrow to discuss the second National Development Plan, (NFT) a framework to subsidies available for Hungary in scope

of the European Union's next budgetary period between 2007 and 2013. If the EU accepts the 2nd NFT, investments worth Ft12.000 billion might be realized with the help of EU subsidies in Hungary during this period. Etele Baráth, Minister without

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portfolio responsible for EU issues, Minister of Equal Opportunities Kinga Göncz and Economic Minister János Kóka willalso be present at the meeting. (Nb 1) R.G.

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PM: Roma issue biggest social challenge

Finding solutions to the problems of Roma communities may well be the biggest social challenge Europe faces in comingdecades, Prime Minister Ferenc Gyurcsány said yesterday. The prime minister was speaking as co-chairman of an eight-nation conference in Sofia, launching the Decade of Roma Inclusion, an initiative aimed at improving living conditions for the Roma population of Central Europe and the Balkans through better education, healthcare, employment opportunities and

housing. Gyurcsány said the Roma issue had to be handled both in bilateral contacts and at EU level. (MTI; Nv 2)

Domestic

Gov't mulls using choppers for radar construction

Opening a new chapter in the saga of a radar station to be built on top of the Zeng? peak in southwestern Hungary, to meetHungary's defense obligations as a NATO member, the government is allegedly mulling an alternative plan to use helicoptersto transport construction equipment and parts of the structure to the site to minimize environmental damage, broadsheetMagyar Hírlap reported without giving the source of the information. The news comes after near-violent conflicts betweengreen organizations and forestry workers last fall when the latter arrived on the scene to "pave the way" for the project (in theliteral sense of the word) just to find that Greenpeace activists barred access to the peak to save trees and protected species inthe area, which is a nature conservancy. (MH 3) P.P.

Two men shot on Budapest streetTwo men were shot, one in the chest, the other in the back, on an open street in downtown Budapest yesterday afternoon.Both were hospitalized in life-threatening condition, police said. Police reported that the shooting appeared to be the endresult of an altercation between four men. Eyewitnesses said two of them had shot the other two, escaping from the scene in asilver-colored car. Ambulances took the two victims to a nearby hospital. Police apprehended one of the perpetrators, 44-year-old György Orosz, and have spread a dragnet for the other. (MTI; MH 2, Vg 14, Nv 16)

Massacre not ethnically motivated

There is no reason to believe that last week's massacre of the Szalma family in Horgos, Voivodina, was ethnically motivated,Serbian authorities and the local mayor said. Nándor Szalma, a wealthy businessman involved in a variety of activitiesranging from farming to cross-border alcohol and fuel trade, was murdered in cold blood 5-7 days ago together with his wife,children and parents in their home, but the bloodbath was not discovered until Tuesday. It is widely assumed that the murder was an "inside job" of professional criminals, triggered by a business conflict and possibly executed by an assassin. One of Szalma's business partners was also recently murdered in Hungary, Népszava reported citing unnamed sources. (Nv 16, MH9) P.P.

Stockwatch

BUX Close: 15462.92 Change: +20.64 ( +0.13%) Stock Closing price Daily change (%) Average price Volume MOL 12,450 -0.4 12,418 117,021 Matáv 885 -0.6 888 1,059,223 OTP 5,945 -0.3 5,975 562,671 Richter 25,300 2.1 25,139 82,755 Egis 13,310 4 13,171 26044 Rába 770 -1.3 780 69,147

Exchange

Feb 02, 2005 National Bank of Hungary EUR 1 245.53 USD 1 187.79 GBP 1 353.95 CHF 1 158.11 JPY 100 181.32

Weather

Tomorrow: cloudy

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High -3°C (27°F)Low -8°C (18°F)


Pension funds urged to buy shares

The president of the Budapest Stock Exchange (BSE), Attila Szalay-Berzeviczy, urged pension funds to be bolder and invest more of their assets in shares at a roundtable discussion yesterday. Péter Holtzer, who heads OTPBank Rt's fund manger as well as the Association of Hungarian Investment Fund Managers BAMOSZ, agreedthat pension funds could invest more into stocks, adding that they should have a diversified portfolio, includingshares from other countries of the region. (Econews; NG 1, Nv 5, Nb 7, Vg 17)

GVH fines Vodafone Ft 5 mln

The Competition Office (GVH) fined wireless services company Vodafone Hungary Mobil Communications Rt Ft 5million for misleading advertising, GVH said yesterday. Between January and August 2004 Vodafone claimed itwas Hungary's most popular mobile service provider in advertisements. GVH ruled that the statement was not

supported by sales figures: although Vodafone's share of the market increased in 2003, Vodafone had neither themost users nor the most new contracts that year. (Econews; NG 5, Nv 6, Vg 13)

Stocks surge to new record high

Leading Hungarian stocks powered to a new all-time closing high amid frenzied trade, with oil group MOL Rtfirmly in the driving seat. Blue chips were up across the board ahead of the annual reporting season that kicks off on Friday with drug maker Richter Rt's fourth quarterly report. The headline BUX index soared 321.89 points, or 2.08 %, to 15784.81, while the mid-cap BUMIX index also surged 24.30 points, or 1.66 %, to 1,488.26. (Econews;NG 11, MH 3)

Kapuvár loses Triumph orders

Kapuvár Clothing Manufacturers, a clothing company in Kapuvár has lost its orders from Austrian underwear andswimwear maker Triumph. Triumph decided to outsource its production to a company in Romania, where labor ischeaper, Kapuvár Clothing chairman-CEO Vince Bujtás said yesterday. Triumph's commission work ordersaccounted for half of Kapuvár Clothing's business last year. The loss will force Kapuvár Clothing to lay off 105 of its 250 workers. But some of the laid off workers could be hired by Diadal, another company in Kapuvár whichmakes commission work for Triumph in Germany (Econews; NG 5, MH 3, Vg 13)

Zeuna looses half of Suzuki order

Zeuna Stärker Hungary Kft, which produces exhaust systems for car manufacturers, lost half of its orders fromSuzuki Hungary Rt this year. In previous years 100,000 - 110,000 exhaust systems were delivered; this year's

orders for the Ignis models are only about 50,000 - 60,000 items. The tender for the new Swift models was lostbecause of increasing wage costs, general manager Herbert Rupp said. Meanwhile, the company has won neworders from Mercedes, it will produce exhausts for the new S-series; about 20,000 - 30,000 this year and 130,000yearly from next year on. Exhausts are made for Porsche Cayenne and Volkswagen Touareg models, for BMWmotorbikes and Ferrari sports cars. (NG 5) G.R.

Manure plant for Sümegprága

Sümegprága Ferment Kft is to build a fertilizer plant with a Ft 650 million investment in Sümegprága (WesternHungary), the Mayor of the village, János Hujber, said yesterday. The company is 51% owned by the municipality;the rest belongs to Budapest-based Ferment Kft. The local council invested the construction of the site to thecompany and they will establish the public utilities on it. The factory should be ready by the end of the year. It willprocess 35,000 tons of excrement and 15,000 tons of other agricultural byproducts yearly and will employ about

60 workers. (NG 4) G.R.

CEO leaves Bonbonetti and Stollwerck

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Confectionary group Bonbonetti Trading Kft and Stollwerck Budapest Kft CEO István Justin said yesterday that hewas stepping down from both his positions and was leaving the Bonbonetti group as of February 28, 2005. Justin joined Stollwerck Budapest eleven years ago and has been CEO of that company since 1999. Justin becameCEO of Bonbonetti Trading in September 2004. (Econews; NG 5, Vg 13)

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Viasat3 winds up terrestrial broadcasting

TV channel Viasat3 will finish terrestrial broadcasting from Feb 4 and will only be available through cable andsatellite. The channel agreed with National Radio and Television Board (ORTT) on terminating its permission for terrestrial broadcasting. Viasat3 is available in more than 1.7 million households now. Cable and satellite systemsprovide the most effective and flexible ways for further expansion, CEO Attila Kocsis said. The channel increasedits audience ratio in 2004; among the population between age of 18 and 49 it reached 6% in the summer. Advertising revenues grew by almost 50% in the first nine months of 2004 yr/yr. (NG 5, Vg 13) G.R.

AMI to unite all 9 manure branches

AMI Agrolinz Melamine International GmbH is to unite its 9 Hungary-based manure storage and commercialdivisions into one firm called AMI Hungary Kft. The fusion is expected to further improve the firm's efficiency,organizational structure, and customer services. AMI sells 250 thousand tons of manure a year in Hungary. According to their own data, they have a 50% market share and are the biggest participant of the nitric acidmarket. (Vg 14) E.C.

Merrill Lynch to launch in Hungary

After Poland and the Czech Republic, Merrill Lynch is now planning on launching investment funds in Hungary,Merrill Lynch representative Marek Saran said to Polish daily Gazeta Wyborcza. Last year, the famousinvestment bank expressed its intention to the State Financial Institutions Supervision (PSzÁF) to offer its servicesin Hungary. It is not yet confirmed when the actual expansion is to take place. (Vg 18) E.C.

Rába develops suspension system

Rába Axle Kft has developed a very compact suspension and drive system for low-floor buses designed by BritishEnterprise Bus Ltd. It is one of the smallest solutions to date. The new technology aims to provide the largestpossible internal space in the buses. The suspension system is being tested by the British company; the resultswill be available by May. If the tests succeed, several new orders may be available for the Gy?r-based company.(NG 12) G.R.

Mahart to ship containers to Black Sea

Mahart Free Port Rt is to offer an alternative solution to trailer truck transport. The company is to start shippingcontainers on schedule from Budapest to the Black Sea, starting from March 25. This was prompted by a newcontainer terminal being recently completed in Constanta, but was also due to Western European ports being sooverloaded that around the Antwerpen - Amsterdam area ships often need to wait over 60 hours to be unloaded.(Vg 13) E.C.

Supermarkets must pay promptly

The government agreed to amend trade legislation to force supermarket chains adhere to payment deadlines to

their suppliers, the Socialist deputy chairman of parliament's agriculture committee said yesterday. Zoltán G?gössaid supermarkets neglected the relevant laws that restrict them to a 30-day payment deadline, and continue todraw up contracts with farmers with up to 180-day payment periods. G?gös said this kind of "unfair foul play" willnot be accepted. (MTI; NG 5)

Hungarians sweep the Eau-scars

In 3 out of the 4 categories, a Hungarian mineral water won the Eau-scar prize at the Paris AquaExpo this year.There has been no such success over the 23-year history of the AquaExpo. Amongst the carbonated waters, theDebrecen-originated Ave water took the first prize; Szentkirályi Mineral Water Kft's herbal flavored drink placedfirst in the flavored category; and in the innovative category, the Debrecen-based Jodis Kft's iodine-enrichedJodicum mineral water was awarded the best prize. (Nb 15) E.C.

Seminis reports 15% sales rise

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The Hungarian subsidiary of Seminis, a big grower and marketer of fruit and vegetable seeds, had sales of Ft 2.6billion in 2004, up 15% from a year before, CEO József Mundweil said yesterday. Seminis Hungary Seeds Kftexpects a 5-8% sales rise in 2005, Mundweil said, noting that a greater rise is unlikely as the company's Ft 600million sowing seeds processing plant, opened in 2003, was operating at full capacity. Mundweil said Seminis'exports to EU countries were increasing rapidly, but there was a slight decline in sales on the domestic market.(Econews)

Plane Station collects airport licenses

Plane Station, a UK-based property developer, and the municipal council of Székesfehérvár have started to applyfor licenses to turn an old military airbase 40km SW of Budapest into a civilian passenger airport. Alone the costof building the 2,400m runway - currently the airfield has just a grass runway - will be between Ft 4.2 billion and Ft4.7 billion, Ferenc Tóth, the CEO of the company that operates the airport, said yesterday. Plane Station hasbeen making plans for the airport for four years, but only recently decided that it would serve passenger traffic,rather than cargo traffic. (Econews)

Economics

Gov't to amend housing loan rules

On the suggestion of Hungarian Banking Association the government will soon amend the housing loan subsidyprogram called Fészekrakó. The original phrasing of the order includes some ambiguous calculation methods for the sun of the loan. According to the corrections the disputed price limit of Ft 15 million for the flats will also bemade less strict, because the price of the building site will not be included within the loan. (NG 1) G.R.

VAT revenue up Ft 30bln on expectations

Central budget revenue from VAT exceeded plans by Ft 30 billion in January, Finance Minister Tibor Draskovicssaid on commercial television station TV2 yesterday. Draskovics said the surplus was the result of stricter auditingby the Ministry. He added that the Ministry had found faults with one in ten VAT returns. Draskovics did not saywhether the higher than forecast VAT revenues will affect the ministry's forecast for a Ft 210 billion generalgovernment deficit, excluding local governments, in January. (Econews; NG 3)

MNB independence issue- new twist

Chairman László Akar informed Népszava that the MNB supervising committee is investigating whether ZsigmondJárai MNB president's helping two Fidesz MPs with preparing their submission to the Constitutional Court violatesthe independence of the bank. According to Finance Minister Tibor Draskovics, it does. MNB spokesman, Gábor Missura, countered that the bank is legally obliged to inform MPs, adding it is the modification of the banking lawthat violates the bank's independence. This ammendment is the very subject of the submission to theConstitutional Court. (Nv 6, MH 11) K.H.

PM: Exchange rate stability-priority

The stability of the foreign exchange rate is of primary importance, and, in this respect, the economy andbusinesses had the same interests, Prime Minister Ferenc Gyurcsány told a meeting in the Hungarian Chamber of Commerce yesterday. "Exchange rate stability enjoys priority over the exchange rate level," Gyurcsány said,adding that the stability of the exchange rate lessens foreign trade risk, he said. (Econews; NG 3)

Online reservations triple

In comparison with previous years, online reservations have nearly tripled, although the revenues from onlinesales are rather insignificant in terms of the total revenue. The number of reservations on travelport.hu increasedby 50% last year, whereas it had never risen above 15% before. According to the data of the website's operator,the number of hotel room reservations has topped 10,000 in 2004. Malév Rt's revenue from online sales reachedFt 1,17 billion, which is 6.9% of the domestic sales. Malév spent Ft 90 million on the introduction of the newsystem last year, and is planning on investing another Ft 10 million on system development. (Vg 14) E.C.

Russia ensures smooth oil supply

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Russia will continue smooth crude oil supply to Hungary despite the recent break-up of its major oil companyYukos, Energy Ministry officials told visiting Hungarian Foreign Minister Ferenc Somogyi yesterday. After talkswith his Russian counterpart Sergei Lavrov, Somogyi said the two countries would conclude agreements oneconomic cooperation and the manufacture of arms under Soviet licenses during Prime Minister FerencGyurcsány scheduled visit to Russia two weeks from now. (MTI; Nv 2)

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Politics

PM: "open planning" of Nat Dev Plan

After meeting of the heads of Hungary's four parliamentary parties yesterday, Prime Minister Ferenc Gyurcsánysaid that the next phase in preparing Hungary's National Development Plan for the next EU budget period,between 2007 and 2013, would be an "open planning process" involving experts. Proposals specific to Hungary'sindustries and sectors will be drafted by the end of February or the beginning of March, Gyurcsány said. The mainpillars of the new National Development Plan will be competitiveness, greater justice, and, on the initiative of opposition Fidesz chairman Viktor Orbán, security, Gyurcsány said, adding that further four-party meetings will beheld, should they be required. (Econews; NG 3, MH 1,4,5, Nb 6, Vg 5)

Advertising quarrel leads to sacking

Szilárd Sasvári and Róbrert Juharos of Fidesz, both committee members of the city municipality, were deprived of their positions due to a disagreement with their own faction regarding a proposal put forward by Sasvári andaccepted by the City Council. The motion allows Mediacontact Kft to install ad-equipment on telephone boxeswithout paying the capital for using public space. The company began this activity last year after signing acontract with Matáv. According to Népszava two big "right wing" ad companies are behind what happened at themunicipality, as the decision is disadvantageous for them. (Nv 4 K.H.)

Domestic

Secret plans nuke waste siteSpeaking in Budapest on Tuesday, Jan Haverkamp, an expert of environmental protection agency Greenpeaceaccused Hungary of planning to create an international nuclear waste site in scope of a planned waste siteconstruction in Boda, southwestern Hungary, figyelőnet.hu reported. Haverkamp bases his allegations oninformation coming form an EU working group called Sapierr. According to Havercamp, the group's Hungarianmember is ready to suggest the establishment of such a site in Hungary. Recently appointed governmentcommissioner Ferenc Wekler denied the allegations and said that he would personally do anything to veto such aplan. (figyelőnet.hu, BBJ website)

Nazi-hunter on suspected war criminal

Charles Zentai, a Hungarian-born Australian citizen, who is suspected of having murdered a 18-year-old Jewishyouth in Budapest during World War II, is believed to have committed more crimes, including the torture of Jewishchildren, the director of the Jerusalem-based Simon Wiesenthal Center said in Budapest yesterday. The 86-year-old Zentai, living in the west Australian city of Perth, was located as part of the center's campaign aimed atidentifying and prosecuting WWII criminals. Zentai denied the charges in an interview with an Australian TVchannel in mid-January. (MTI; MH 7, Nv 16)

Stockwatch

BUX Close: 15784.81 Change: +321.89 ( +2.08%)Stock Closing price Daily change (%) Average price VolumeMOL 12,945 4 12,782 657,783Matáv 909 2.7 899 2,614,688OTP 5,975 0.5 6,000 1,028,564Richter 25,800 2 25,454 57,077Egis 13,545 1.8 13,516 24,059

Exchange

Feb 03, 2005 National Bank of HungaryEUR 1 244.21USD 1 187.59GBP 1 353.70CHF 1 156.97JPY 100 180.27

Weather

Tomorrow: p/cloudy

High -3°C (26°F)Low -9°C (15°F)

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Gedeon Richter's Q4 profit up 24%

Gedeon Richter Rt said its fourth-quarter profit increased 24 %, beating analysts' expectation of declining earnings. Netincome rose to Ft 11.35 billion forint, or Ft 609 a share, from Ft 9.14 billion or Ft 490, a year earlier, the company said in astock exchange statement. The median forecast of eight analysts polled by Bloomberg News was a profit of Ft 8.43 billion.The company benefited from wholesalers and pharmacists bringing forward purchases in Hungary, which accounts for abouta third of Budapest-based Richter's sales, in anticipation of smaller government subsidies starting last month. (Bloomberg;

NG 7, Vg 9)

Both Bp indexes reach record highs

Hungarian stocks forged ahead on Friday to post consecutive record highs, as drug maker Gedeon Richter Rt kicked off theannual earnings reporting season with a bottom line that beat the market consensus. The headline index ended above the16,000 level after a surge in late afternoon trade and well on the way to analysts' projection of 16,900 for the full year.Volumes were eased from Thursday's frenetic levels but still posted above average for the period from the last quarter of 2004, with oil group MOL Rt continuing to drive the market both in terms of turnover and gains ahead of bullish analysts'

expectations for its fourth quarter earnings release. (Econews; Nv 1, NG 7, Vg 9)

Spar builds meat plant for own supply

Austrian-based Spar's Hungarian affiliate built a meat processor costing approx Euro 14.2 million, with a daily capacity of 1,600 sides of pork and 50 beef quarters, enabling it to produce 14 tons of meat products, and officially opened it at Bicske,near Budapest on Saturday. At the ceremony, attended by Austria's ambassador to Hungary, Economics Ministry StateSecretary Tibor Szanyi welcomed the new facility. (MTI; Nv 5, Vg 5, NG 6)

Bourse reports profit of Ft 1.024 bln

The Budapest Stock Exchange (BSE) Rt had after-tax profit of Ft 1.024 billion in 2004, according to preliminary figures,

sharply up from Ft 129 million a year before, the BSE said on Friday. The profit figure, which was 45% more than the target,was the result of high turnover on the bourse and efficient management, the exchange said. Last year average daily shareturnover was Ft 10.3 billion, as against Ft 7.5 billion a year before. The BSE announced its preliminary figures for 2004 atthe same time as the first listed company published its annual report. (Econews; NG 7, Vg 10)

Financial Inst. eyes Slovakia

A regional savings co-operative, Rajka és Vidéke may be the first local financial institution to open a branch office outside of Hungary, unnamed sources reported. The news was confirmed by the co-op's Managing Director, a Ms Nusser, who addedthat Rajka és Vidéke would open a branch office in neighboring Slovakia during the second half of 2005. According to theState Financial Institutions Supervision (PSzÁF), so far a total of 63 foreign financial institutions announced plans to offer their services in Hungary, but besides Rajka és Vidéke, only CIB Bank Rt and MKB Rt admitted to considering similar

projects abroad. (NG 1) P.?.

Gov't mulls sale of Bp Airport Stake

The Government will begin weighing whether to hold an initial public offering for state-owned Budapest Airport Rt or sellthe airfield operator to a single buyer, Chief Executive Officer János Hárskúti said. The government plans to choose anadviser this month for the sale of 75 % minus one share and complete the disposal this year, Harskúti said in an interview inFrankfurt yesterday. "Most of the European airports have expressed interest, as well as financial investors," Hárskúti said,declining to name possible buyers. (Bloomberg; NG 7)

Wizz closes Euro 25 mln transaction

Low-fare airline Wizz Air said on Friday that a Euro 25 million financing transaction it announced in 2004 December had been closed. Wizz Air has issued five-year convertible notes in exchange for the financing. Half of the financing is in theform of cash from Indigo Partners, a U.S.-based private Equity Company that specializes in investing in airlines. The other

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half of the convertible notes were subscribed by Debis AirFinance, a company which leases aircraft, and Lufthansa Technik,an aircraft maintenance company, in exchange for services they provide to Wizz Air. (Econews; NG 5)

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Ryanair may land in Budapest

The Irish no-frills airline Ryanair Holdings Plc. is said to be mulling a direct flight from Budapest, the Dow Jones newsagency reported. Ryanair had approached Budapest Airport Rt, the operator of Ferihegy International Airport, in January, butno agreement had been reached on the airport fees, Budapest Airport CEO János Hárskuti told the Dow Jones. Ryanair willlaunch direct flights to the Polish city of Wroclaw and to Brno in the Czech Republic from next month, and is in talks with

the airports of 50 other European cities about new flights, the spokesperson for the Irish airline added. (NG 5) P.?.

TUV Group closes good year

Quality insurance company TÜV Rheinland's Central European Group reported a net revenue of Ft 2.2 billion last year, outof which the Hungarian subsidiary TÜV InterCert Kft produced Ft 1.7 billion, the group's CEO Gábor Czitán announced. Thegroup's after-tax profit reached Euro 500,000, from this TÜV InterCert accounted for Ft 100 million. The group's 300employees plan to focus on strengthening their position on the Russian market this year and will open three new offices inRussia, Czitán said. (Nv 5) M.K.

Malév gets new Pres & CEO Fri

Majority owner State Privatization and Holding ÁPV Rt will elect a new board of Hungarian Airlines Malév Rt on Friday.The previous President-CEO László Sándor resigned. Malév's new CEO will be János Gönci and the new President will bePéter Hónig who is also CEO of Dunaferr Rt. Malév is currently undergoing another privatization tender, after severalunsuccessful attempts to sell the company. A total 99% stake is now offered for sale, so far four bidders have purchased thedocument package. The tender will expire at the end of February. (MH 11) M.K.

MKB winds up Swiss subsidiary

Hungarian Foreign Trade Bank (MKB) Rt has wound up its wholly-owned Bern-based subsidiary Centropa Finanz AG andremoved it from the company register, MKB said on Friday. Centropa provided asset management services, but did notactively conduct business, according to MKB's 2003 annual report. Centropa had registered capital of CHF 1 million.(Econews; NG 4)

MARTINEX looks West

The Hungarian file managing system manufacturer and distributor Martinex group (comprising of Martinex Kft, MappaTechnika Kft, Rehabit Komplex Kft.) is about to enter the Austrian, Italian and German markets. Aleady present in theBalkans, the group has 61 sites including a printing house in Hungary. Co-owner András Mihaleszkó says their westernexpansion will make good use of their capacity to satisfy individual quality needs as well. Martinex is noted for its socialconsience, concentrating on hand made products, the company is unusual in that 96% of the 3600 employees are physicallychallenged in some way. The company produces environment-friendly products, which can be entirely recycled. (Vg 8) K.H.

4 bidders for M0 N. section construction

Four qualified bidders will further compete for the opportunity to construction the northern section of the M0 beltway around

Budapest, which also includes a bridge construction on the Danube, the National Motorway (NA) Rt announced. The four bidders are the consortium of Hídépít?Rt-Strabag Rt, Betonút Rt, Vegyépszer Rt and Slovak Doprastav. The construction of the new section may start this year, if the municipality of Szigetmonostor gives its consent to it. The new section must befinished by December 31, 2006. (MH 11) M.K.

Flextronics gives notice to 450

Flextronics International Kft has informed 450 of its employees at its factory in Zalaegerszeg that they will be laid off inMarch, human resources manager Péter Papp said on Friday. Another 450 people will also be laid off later. "The managementand the factory representatives have concluded negotiations, and the 900 job cuts announced in January, to be completed bythe end of May, will take place in four phases," Papp said. The first phase affects 450 employees in March, Papp said.(Econews)

Externet turnover on the rise

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Internet service provider company Externet produced a 20% growth in revenue, with a total of Ft 400 mln last year. Pre-taxincome was about Ft 20mln. An Interfax report says the number of ADSL subscribers doubled in 2004, due to the 6megabit

broad band offered by the company. The Externet is owned by Econet Rt., who aquired it last summer. At this time ExternetHQ was moved to Budapest from Szolnok. The company is pursuing an intensive ADSL promotion this month. (Vg 5) K.H.

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HVB expects good profit

Mortgage bank HVB (HVBJ) Rt expects to report good figures for 2004: the bank's business expanded in line with the target,and profit increased faster than expected, CEO Gyula Nagy said on Friday. Nagy said he could not offer specific figures untilthe bank publishes its annual report. HVBJ targeted pre-tax profit of Ft 850 million - 1 billion and total assets of Ft 90 billion- 100 billion for the end of 2004. In 2003 HVBJ had pre-tax profit of Ft 705 million and total assets of Ft 62.7 billion,

according to Hungarian Accounting Standards. (Econews)

Economics

PM: Black economy some 30% of GDP

Economic players operating in the untaxed shadow economy produce Ft 6,600 billion a year, corresponding to 30 % of Hungary's gross domestic product, Prime Minister Ferenc Gyurcsány said on Friday. "As a consequence, the central budgetloses Ft 3 trillion in unpaid taxes and social security contributions annually," the prime minister, told a forum of the Societyof International Corporations in Hungary. Gyurcsány said any success in "blanching this black and grey economy" wouldenable the government to cut taxes. If the government managed to collect the missing Ft 3 trillion, the local business taxcould be scrapped all over the country, social insurance payments could be lowered by 10 percentage points, the highest VATrate could be reduced to below 20 per cent, and the remaining funds would still be sufficient to revamp the welfare systemand healthcare, the prime minister said. (MTI; NG 3, Vg 4)

FM calls for stricter VAT auditing

Finance Minister Tibor Draskovics has sent a letter to European Commissioner for Taxation László Kovács asking for assistance to make auditing VAT statements more efficient in the future, the Finance Ministry said in a statement on Friday.Draskovics proposed that the Commission discuss the possibility of amending regulations on the exchange of information

between tax offices in different EU countries. Draskovics said the Hungarian government was prepared to provide assistancereviewing the regulations. The changes would be aimed at increasing the EU's budget revenue, and they would help boost thecompetitiveness of honest businesses. (Econews; Vg 4)

Romania a favorite for Hungarian investors

Romania remains on the top of the list for Hungarian companies willing to invest in the neighboring countries, according tothe Economy and Transport Ministry. Just last year 610 companies with Hungarian interest were registered Romania by theend of November. Hungary has a total of 4,948 companies registered in the Eastern neighbor, making it the 7th largestinvestor in the country. However, Hungarian companies invested almost $1 billion in Croatia during 2002 and 2003, with thelion's share stemming from oil and gas company MOL Rt's purchase of the local oil firm INA shares. In Austria, around a100 companies operate under the watchful eyes of Hungarian investors, who decided to spend their money mainly in theservice industries sector. (NG 1) P.?.

PPP is picking up

According to department head, Sándór Végh of The Hungarian Foreign Trade Bank (MKB) Rt the use of Public Private

Partnership is expected take off throughout Hungary very soon. PPP has numerous advantages compared with traditionalcredit-financed state investments. With PPP state can transfer some risk elements, such as constructional or operational

problems and state budget has to pay only annual costs instead of the total sum, added Végh. Some 10-20% downpayment isneeded and the interest rates are between those of the state and the market. The complexity of the contract, however canmake the project preparation a bit time consuming. The M6 highway is one of the MKB's financing projects at a cost of Ft10 billion. VG, p.10 (K.H.)

Politics

PM warns against nostalgia for communism

Prime Minister Ferenc Gyurcsány warned of the hazards of feeling nostalgia for the era of Hungary's 'soft' communism, as he

addressed the Socialist Party's women's issues section on Saturday. Gyurcsány words were triggered by opposition Fideszleader Viktor Orbán who commented rather extensively on the benefits of living in the age of communist party leader JánosKádár, on a television program on Friday. Though there were some improvements to life in the 1970s and 80s, Gyurcsány

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said, fifteen years after completely overhauling the political system it seems a shame to try to revive the past. (MTI; NG 3, Nb 6)

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Boards approve MDF-MDNP merger

The respective boards of the Hungarian Democratic Forum (MDF) and Hungarian Democratic People's Party (MDNP) haveapproved the idea to merge the two parties from April this year, chairperson of MDF Ibolya Dávid and chairman of MDNPJózsef Szabó announced. The founders of MDNP left MDF nine years ago, when Sándor Lezsák was elected chairman of MDF. Since then, MDF has expelled Lezsák and this has greatly contributed to MDNP's return to MDF. The national

conventions of the two parties will be held on the same day in April. (Nv 3) M.K.

Hiller to be succeeded by Vass or Schiffer

There are only two candidates now who are potential successors of István Hiller as Minister of National Cultural Heritage. Asreported earlier, Hiller decided to give up his position from February 14 after having been elected chairman of the HungarianSocialist Party (MSzP). The two candidates are Lajos Vass, who is political state secretary of the ministry and János Schiffer,who is deputy mayor of Budapest responsible for cultural affairs. Prime Minister Ferenc Gyurcsány is expected to announcehis decision about the new minister today. (Nv 3) M.K.

Domestic

PET/CT diagnostics to open in Hungary

Pozitron Diagnostics Kft will open Hungary's first PET/CT diagnostics center at the end of April, Medical Director andManaging Director Zsolt Lengyel said. The leasing of the Siemens PET/CT scanner, worth several billion forints, wasfinanced by the K&H Group. A total of 6,000 screening tests will be performed annually at the clinic, with Ft 250,000 as the

price tag for one full examination. A total of 5-6 PET/CT scanners would be needed in Hungary to fulfill demands, Lengyeladded. Positron emission tomography (PET) and computerized tomography (CT) are standard imaging tools that allow the

pinpointing of a cancer within the body before directing treatment. (NG 5) P.?.

Stockwatch

BUX Close: 16032.83 Change: +248.02 (+1.57%)

Stock Closing price Daily change (%) Average price Volume MOL 13,195 1.9 13,125 435,032 Matáv 925 1.8 914 1,755,166 OTP 6,000 0.4 5,998 81,755 Richter 26,480 2.6 25,923 107,310 Egis 14,500 7.1 14,038 85,303 Antenna 4,190 0.4 4,115 10,975 TVK 5,350 2 5,302 12,399 Rába 800 1.3 792 83,693

Budapest Stock Exchange

Exchange

Feb 04, 2005 National Bank of Hungary EUR 1 244.19 USD 1 188.36 GBP 1 354.40 CHF 1 156.67 JPY 100 180.66 CZK 1 8.15 PLN 1 61.28

Weather

Tomorrow: p/cloudy i h 1°C (31° )



Documents

7Days, 2005. február 7